US-based Kraken is expanding its crypto-based offerings for Australian investors. With this new product, certain customers will be able to invest in crypto price movements without holding the underlying crypto assets.

In Kraken’s blog announcement published on November 3, it was stated that the new broker service was available immediately. It was stated that institutions and high net worth investors in Australia can access different crypto derivatives under a financial services licence.

Kraken emphasized that this new product was developed specifically to provide flexibility, as wealthy customers need to implement advanced trading strategies through a licensed broker.

Kraken Australia and World General Manager Jonathon Miller said: “Our new premium product meets the trading needs of our customers and takes them one step further in their crypto journey.”

This new product launch of Kraken comes after the corporate changes the company made recently. Recently, driven by market and regulatory pressures, Kraken has undergone a significant reduction in its workforce.

The dismissals were considered as a step towards providing “discipline” in the company’s organizational structure and making decision-making processes faster. These changes were concentrated particularly in senior management, with the goal of increasing Kraken’s product innovation.

Kraken announced that it is laying off approximately 15% of its staff, joining a wave of layoffs that also includes other crypto firms such as Consensys and dYdX.

Kraken’s decision to take this step in the Australian market also coincides with a period of uncertainty regarding the local regulatory environment. In early September, the Federal Court of Australia ruled that part of Kraken’s margin trading product was against local law.

This decision led Kraken to call for clearer rules on the regulatory environment in Australia. The company expressed disappointment with the court decision, stating that Australian crypto investors and businesses “continue to operate in a complex and uncertain regulatory environment.”

This new service offered by Kraken in Australia appeals to institutional customers who want to implement advanced trading strategies in the crypto market. Crypto derivative products provide investors with the opportunity to participate in market movements without holding underlying crypto assets, providing more flexible risk management, especially against market volatility.

Such products offer investors the chance to increase portfolio diversity by giving them the opportunity to benefit from price movements without physically holding a particular asset. In this context, Kraken offers wealthy customers who are interested in crypto investing the opportunity to manage their risks and develop advanced strategies through crypto derivatives.

Kraken making such a move in Australia shows both its desire to respond to customer demands in the region and its strategy to consolidate its position in a market where crypto regulations are uncertain.

Diversifying its services to Australian wholesale customers by offering a licensed service, Kraken aims to provide innovative solutions in the crypto derivatives market in the region.

With this new service, Kraken aims to gain a stronger foothold in the crypto ecosystem in the region by offering advanced financial solutions through crypto assets to institutional investors in Australia.

Offering a licensed financial brokerage service, it provides investors in Australia with the opportunity to trade on a trusted platform and expands its influence in the crypto markets by offering wealthy clients the opportunity to implement more advanced strategies through crypto derivatives products.